A Case Study: Salvatore Ferragamo, SpA

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This instance describes the history and present quandary confronting Wanda Ferragamo and her six kids. all of whom are involved in the household concern. The House of Ferragamo. a Florence-based shaper of high quality Italian vesture and leather good. was founded by Salvatore Ferragamo. Throughout his 57-year calling. he achieved a world-wide repute for comfy places of creativeness and the finest quality. Since his decease in 1960. Wanda had successfully overseen old ages of enlargement while take a firm standing on household togetherness. She believed that the household should organize a cohesive decision-making organic structure. “like the seven arterias to the heart” .

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The aim of the survey is to come up with a scheme that will enable the company to prolong both high quality merchandises and continued growing. specifically duplicating the gross revenues over the following five old ages.


Industry Level Analysis

The luxury goods industry flourished during the flourishing universe economic system of the late 1980’s making $ 52 billion by 1990 ; a quickly turning category of freshly rich consumers seemed willing to pay higher monetary values for esteemed labels. Well-known purveyors of high manner vesture. aroma. and other expensive wares increased production of “exclusive” merchandises and concocted new points to sell. typically under the same upmarket trade names.

In a market where even ill managed luxury houses made a net income. “creativity” and “style” . instead than mulish concern schemes. were typically viewed as the key to success. As a full-line retail merchant of luxury goods. Ferragamo’s dress shops competed with the Hermes. Valentino. and Chanel dress shops. frequently located along the same street. In this environment. Ferragamo’s monetary values were slightly lower than the others. reflecting a client perceived difference in smart and styling.

Company Analysis

Salvatore Ferragamo. SpA. was a Florence-based shaper of high-quality Italian vesture and leather goods. which began as the little. hand-crafted shoe concern of Salvatore Ferragamo. Since his decease 30 old ages earlier. Wanda had presided over the company’s growing. pull offing the concern with her 6 kids. Unlike the Gucci or Benetton households. the Ferragamos placed a premium on consensus determination devising and had developed the company bit by bit in order to continue merchandise quality.

The company was approximately divided into six organisational units. each tally by one of the Ferragamo kids. As president Wanda was actively involved in both design and disposal for the full concern. The three girls managed design and selling for their several merchandise lines. Fiamma. the eldest. was in charge of women’s places and pocketbooks ; Giovanna. women’s off-the-rack ( RTW ) vesture ; Fulvia. the youngest scarves and other accoutrements. The three brothers focused more on direction and disposal. Eldest boy Ferrucio served as pull offing manager and main decision maker of the company. Middle boy Leonardo was responsible for spread outing the Ferragamo trade name across Europe and Asia. while youngest boy Massimo led the U. S. operations as general director of the Moda Imports subordinate.

SWOT Analysis


  • Wanda Ferragamo was dedicated to keeping Salvatore’s quality. value. and fairness with employees. providers. and clients.
  • The Ferragamo’s developed the company bit by bit in order to continue merchandise quality and focused on consensus determination devising.
  • Provided full scope of size and colour for each manner
  • Design squad worked straight with fabric makers to make particular stuff for its merchandises.
  • Design synergisms: Using same symbol. form. or manner of its merchandises.
  • It take its shop sites at really desirable shopping country and required them carried a full line merchandises.


  • Limited apprehension of its market and clients.
  • Men’s line received merely a parttime attending.
  • It did non hold formalized corporate selling scheme.
  • The determination devising was slow.
  • Needed to better interdepartmental communicating.
  • Strengthen its distribution bases.


  • Consumers had high satisfaction to its merchandises.
  • Global markets had great possible
  • Consumers willing to pay higher monetary value for esteemed labels.
  • Hiring confer withing houses to reconstitute the company.


  • Competitor’s merchandises were more varied and modern. Their designs are more appealing to younger and fashion-driven market.
  • Its rivals in women’s apparels: Gucci. Chanel and Hermes
  • Its rivals on women’s places: Joan & A ; David. Jourdan. and Bruno Magli
  • Its competitor’s in men’s places: Cole-Haan and Bally


I therefore conclude that Ferragamo should maintain concentrating on the planetary upper category client by offering quality and epicurean goods and at the same clip broaden their scheme in footings of client age and gender and different merchandise lines.


The company will hold to alter significantly to turn in this extremely competitory. volatile luxury goods market place. Specifically. it must foremost develop and adhere to a focussed trade name scheme. and 2nd. make an organisational construction which is more antiphonal to the market and perchance less dictated by current management’s concerns.

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A Case Study: Salvatore Ferragamo, SpA. (2017, Jul 10). Retrieved from


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